Abstract

http://ssrn.com/abstract=192629
 
 

Citations



 


 



Competitive Effects of Partial Ownership: Financial Interest and Corporate Control


Steven C. Salop


Georgetown University Law Center

Daniel P. O'Brien


Federal Trade Commission - Bureau of Economics


Antitrust Law Journal

Abstract:     
This paper presents an economic framework for analyzing the competitive effects of partial ownership interests. The competitive effects of partial ownership depend critically on two separate and distinct elements: financial interest and corporate control. These two factors affect the incentives of the acquiring firm and the firm in which it acquires a partial ownership interest. The paper defines and analyzes a variety of different corporate control assumptions such as silent financial interest, total control, and Coasian joint control and applies the framework to horizontal and vertical joint ventures. Partial ownership forces the analyst to grapple with the question of the degree of control or influence that partial owners have over managers, how partial ownership translates into control or influence, and how this influence translates into competitive effects. The paper also develops methods for quantifying the effect of partial ownership interests and joint ventures on competitive incentives, using the modified HHI and a price pressure index (PPI) that we define.

JEL Classification: G34, L20

Accepted Paper Series


Not Available For Download

Date posted: November 25, 1999  

Suggested Citation

Salop, Steven C. and O'Brien, Daniel P., Competitive Effects of Partial Ownership: Financial Interest and Corporate Control. Antitrust Law Journal. Available at SSRN: http://ssrn.com/abstract=192629

Contact Information

Steven C. Salop (Contact Author)
Georgetown University Law Center ( email )
600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9095 (Phone)
202-662-9497 (Fax)
Daniel P. O'Brien
Federal Trade Commission - Bureau of Economics ( email )
601 Pennsylvania Avenue, NW
Washington, DC 20580
United States
Feedback to SSRN


Paper statistics
Abstract Views: 2,064

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.344 seconds